The Cost Of An Offshore Asset Protection Trust

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One of the most common questions people ask, when they are thinking about getting an offshore trust, is “How much does an offshore asset protection trust cost?”

That is a fair question, which requires a thorough answer, because it’s not that straight forward as you might think.

Quality

If you were to do everything yourself, it is possible to set up an offshore trust for a couple of thousand dollars. The issue then is quality. Most likely you don’t have any experience in drafting a trust document, and therefore don’t know how to verify that everything works in the best way possible.

For those that have a significant amount of wealth, it doesn’t really make sense to do everything yourself. When you can get a result that is guaranteed to be much better, than what you personally are able to do, by hiring a consultant.

The Cost Of An Offshore Asset Protection Trust - Infographic

Another important point, if you want to use a top tier jurisdiction for your offshore asset protection trust, it won’t be cheap even if you don’t get any help. What I mean with top tier, are those jurisdictions that have the best reputation. There are many places in the world, which allows you to form a trust, but reputability can be crucial.

In a place like Jersey in the English Channel or Isle of Man, it’s impossible to set up a trust for cheap, no matter what. The benefit of using such a jurisdiction however, is that bank accounts can be easier to open, and you won’t raise any potential red flags with your own government. The last thing you want, is some nosy bureaucrat bothering you, even when you haven’t done anything wrong. A trust in a place like the Cook Islands, can in some cases (even if used legitimately) be looked upon as suspicious.

The Cost

Even though it’s not that simple to provide an exact amount, because of all kinds of scenarios, I’ll still try and give you a rough estimate.

A good offshore asset protection plan, done by a solid team with people that have a lot of experience, can be around $20,000 – 25,000. On top of that some people might want to protect domestic real estate, which can add some extra costs. It can also be necessary to make the structure a bit more complex in some cases, depending on the situation.

My recommendation is therefore that you should have at least $1 million in assets (including cash in your bank account), before creating an offshore asset protection structure. Depending on your situation, and how worried you are about getting sued, you can always get started before you reach that threshold.

Annual fees should usually not be more than $5000, which is only $417 per month for the strongest form of asset protection on earth.

About The Author

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Fredrik helps high net worth individuals with creating international asset protection strategies. To keep anything from currency, real estate, precious metals and any other kind of investment protected from an unexpected lawsuit.